Largest leading bank of the country State Bank of India has decided to come up with the contactless payment cards in combination with debit or credit cards in association with Chennai metro. Bank has asked Chennai metro to introduce this new payment, this help the travelers and the bank as well. Bank will get new customers through this.
This will be dual card which will work as a credit or debit card and it will also have a chip which will allow the customers to use to for making the payments for the metro travelling. These will be the contactless card which will be working on the radio frequency. Unlike credit cards which need to be either swiped or dipped into a chip reader, contactless cards can complete a payment almost instantly. The proposal is yet to be finalized, bank will need RBI permission before finalizing this and making this measure operational.
Bank officials said that SBI was talking to all metro operators. Although there is no revenue in enabling micro payments the bank expects that by 'carding' new customers who are likely to use their cards for other payments it would expand the market.